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Perini Corp. v. Greate Bay Hotel & Casino, Inc.

610 A.2d 364 (1992)

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Perini Corp. v. Greate Bay Hotel & Casino, Inc.

New Jersey Supreme Court
610 A.2d 364 (1992)

RW

Facts

Perini Corporation (Perini) (plaintiff) contracted to renovate a rundown casino for Greate Bay Hotel & Casino, Inc., trading as Sands Hotel & Casino (Sands) (defendant). The casino remained open throughout the renovation. One goal of the renovation was to enhance the casino’s exterior so it would entice more customers. The project was substantially completed by September 14, 1984. Although only punch-list and warranty work remained, the cranes and other equipment needed to complete that work obscured the casino’s new facade and may have misled potential customers into thinking the casino was closed. Sands terminated the contract in December 1984. Perini invoked the contract’s arbitration clause, but the arbitrators awarded damages to Sands. The award included liquidated damages for whatever profits Sands may have lost from September 15 through December 1984. Sands sued for judicial enforcement of the award. The trial court upheld the award despite Perini’s assertion that state law barred awarding damages after a project reaches substantial completion. Perini appealed. The intermediate appellate court affirmed, ruling that the arbitrators had not been clearly mistaken as to applicable law. Perini took its appeal to the New Jersey Supreme Court.

Rule of Law

Issue

Holding and Reasoning (O’Hern, J.)

Concurrence (Wilentz, C. J.)

Dissent (Stein, J.)

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